The stablecoin USDT is no longer linked to the US dollar. Tether has updated its official website. In the past, USDT was back entirely, but now it has increased its cash equivalents as one of the supporting reserve assets.
Tether has always insisted that every one of its coin issued must be supported by US dollar at a price of $1 USD. However, after this revision, it was mentioned in the introduction of USDT that the current reserve may include other assets, including Tether’s loans and receivables to third parties. It is worth noting that in February of this year when the official website introduced the USDT, it still said that each issued coin, “is always” supported by the traditional currency of the reserve, so each USDT is always equivalent to one dollar.
However, the wording of the relevant introduction has been revised to “Every tether is always 100% backed by our reserves, which include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities (collectively, “reserves”).” Immediately, the market questioned whether the USDT is still reserved by the US dollar.
Although Tether has always stressed that the company has enough US dollar reserves, it is inevitable that the revision of the terms would cause the outside world to speculate on the reasons behind it. The public has been skeptical about whether Tether has sufficient dollar asset support. In December last year, Bloomberg that said, Tether has sufficient reserves. However, the reports were not a proper audit and posted a series of doubts.